Here is some more info re IRR and sensitivity. The initial IRR indicates 19.2% as per tech report link below page 1-28
With the Lira being up near 4 USD/TL, Gold over $1300, Silver and copper cancelling each other out the IRR should be higher than the estimate in the Tech report and possibly 2 points higher.
The Çöpler Sulfide Expansion Project is designed to treat 1.9 to 2.2 Mtpa of sulfide ore, from which gold-silver doré will be produced.
Page 1-19 – 1-21 Explains the process and provides a flow chart.
Approximately 6,293 tpd of tailings will be pumped at a slurry density of 28% by weight from the tailings thickener to the TSF.
Sulphide processing costs are estimated at US$373 per ounce of gold recovered.
1.20 Economic Analysis
Information in this sub-section includes forward-looking information. Readers are requested to view the cautionary statements in Section 2.2 regarding information that is forward-looking. Actual results may differ from those presented in this sub-section. A financial analysis for the Sulfide Expansion Project was carried out using an incremental or differential cash flow approach. Cash flow models were developed for the Sulfide Expansion Project with the oxide heap leach as well as for the oxide heap leach alone without the sulfide project. A differential cash flow was calculated between the two sets of cash flows to determine the financial benefit of the sulfide project.
The IRR and NPV using a discount rate of 5% were calculated using this differential cash flow. The financial analysis was performed using the following key assumptions: · The base case gold, silver and copper prices are $1,250/oz, $18.25/oz and $2.75/lb respectively.
Cash flows begin on January 1, 2016 and end on December 31, 2046.
The cash flows take into account depreciation, cash taxes, changes in working capital, and tax credits.
Commissioning is expected at the end of second quarter 2018 with sulfide gold production to begin in the third quarter of 2018. Çöpler Mine NI 43-101 Technical Report Page 1-28
Unless noted otherwise, all cost and sales estimates are in constant Q4 2015 U.S. dollars with no escalation factors taken into account. Table 1-9 provides a summary of the NPV, IRR and payback period using a 5% discount rate. Table 1-9 Financial NPV, IRR, and Payback Period
The project payback period, based on the cash flow for the combined sulfide processing and heap leach operation, is 3.0 years following the startup of the POX plant. LOM cash flows for the Project, the oxide heap leach only case and the differential cash flow between the two are shown in Table 1-10.
AQG Price at posting:
$2.06 Sentiment: Buy Disclosure: Held
